Exam 8: Cost Estimation and Budgeting

Three workers complete a full 8-hour day finishing concrete for a terrace. All three workers are paid $12 an hour and the job bills to the customer for $450. What are the total direct labor costs?

A budget that is created by starting with the work breakdown structure, determining costs for each work package, and then adding these costs together is:

What is the total project budget for design in this time-phased budget?

It was fortunate that the project budget included contingency funding; the top manager had not foreseen that the project would need the services of their elite slide rule squad in more than one area at the same time. Design couldn't complete their work without their services, nor could marketing, or production. Contingency funds came in handy to meet the unanticipated:

An activity with a learning rate of 0.85 takes 25 hours for the first iteration. How long will it take to complete this task for the 15th time?

The project plan is supported by:

What's the relationship between WBS, scheduling, and budgeting?

What is the project budget for November in this time-phased budget?

An expedited cost is one that does not vary with respect to their usage.

There is a tendency for different departments or functions to compete for scarce resources in a zero-sum game when bottom-up budgeting is used to develop a project budget.

An activity with a learning rate of 0.8 takes 30 hours for the first six units. How long will it take to complete this task for the 12th time?

A plan that identifies the allocated resources, the project's goals, and the schedule that allows an organization to achieve those goals is:

Which statement about the use of learning curves is BEST?

Rank the four different types of cost estimates from most to least accurate and explain what the inputs are to each type.

Top-down budgeting, where input is gathered directly from the organization's top management, is often quite accurate.

Activity-based costing and bottom-up budgeting share the step of:

Project cost estimates usually anticipate that resources will be available, that the weather will not be extreme, and that funding will materialize, creating what are called:

Function point analysis is a system for estimating the size of software projects based on the number of lines of code a typical programmer can write in a day.

Whether it is the Boeing V-22 Osprey or a simple storm door installation for a do-it-yourselfer, nothing is ever completed as quickly or as cheaply as initial estimates due to:

Cost estimates that are based as a guideline on real numbers, or figures derived after the completion of preliminary design work, are: